Mistakes To Avoid When Starting Your New Restaurant

The key for any person starting a restaurant is to avoid the usual pitfalls. Many new restauranteurs think: “How hard can this really be?” They quickly learn how difficult it really is.

I am sure there are many of you who have seen various restaurants come and go. Obviously, you want to be successful in your business or you wouldn’t be reading this post. The reason people make mistakes in business is that they do not do what they should do.

Mistake #1
Many restauranteurs believe that they will secure a share of the total market and in doing so they arbitrarily take a number like X%..My Comment:You need to clearly understand the size of your market. If you are a restaurant in a busy mall, your market is far bigger than if you have your restaurant located on a side street within a small town.

Mistake #2
Owners assume business will always improve. They assume that they will not only attract the “magic” X% of the total market initially; but also, they will continue to attract more and more customers going forward. New restaurants sometimes have their biggest sales in their first weeks of operation as people “check them out”..My Comment:Every new business has to have a comprehensive Financial Forecast with benchmarks in place to guide the owner through the initial periods and gauge reasonable future customer counts, average spends and revenues.

Mistake #3
Owners do not have the requisite processes in place before they open..My Comment:The restaurant business it is all about numbers. All new restaurants must have their policies, procedures and controls in place ahead of opening. If they don’t, things can run out of control.

Mistake #4
Having an obsession with things other than sales and costs. They concentrate on the “art” of the business; instead of the “science”..My Comment:Restauranteurs should focus on sales and cost controls from Day #1. Concentrate on building sales and then become a demon on costs. The result – $ in the bank.

Mistake #5
New restauranteurs believe that they should accomplish things one step at a time and not move on to the next step until the current one is complete. For example, first you raise money, then you build the space, then you write develop the menus, then you design the systems, and then you market and open. It is a parallel process instead..My Comment:You must be working on everything simultaneously. Every part of your plan is not mutually exclusive, it is instead interdependent. Marketing is affected by your forecast, and your concept drives your forecast, and your opening costs identify the money that you need.

Mistake #6
Restauranteurs believe that their concept is unique and bullet proof. Every concept takes a little from other concepts and so remember that your “unique” concept will one day be copied..My Comment:If you have developed a process or a menu item that is unique then you are going to always have competition. Remember, imitation is the sincerest form of flattery. Be “better” than everyone else.

Mistake #7
Hiring in your own image..My Comment:If you are a front of the house person then you should be hiring a back of the house manager – someone who complements your skills.

Mistake #8
People see the restaurant business as not being a business..My Comment:Keep your eye on the ball and deliver what you promised so that your customers have a great experience all the time. And then, operate your business ruthlessly.